Exercise 7.10 (Static) Posting sales returns and allowances. LO 7-5

Assume the following account balances as of March 1, 20X1:

Accounts receivable (control account)	$	1,788
Accounts receivableCarol Fountain		940
Accounts receivableRich Jones		848

General Journal
Date		Description	Post. Ref.	Debit		Credit
20X1
Mar.	14	Sales returns and allowances		300
		Sales tax payable		24
		Accounts rec.Carol Fountain				324
		Accepted return on defective
		merchandise, Credit Memo
		101; original sale of Feb. 23,
		Sales Slip 1101
	22	Sales returns and allowances		50
		Sales tax payable		4
		Accounts rec.Rich Jones				54
		Gave allowance for damaged
		merchandise, Credit Memo
		102; original sale Mar. 15,
		Sales Slip 1150

Post the above journal entries to the appropriate ledger accounts.

Accounts Receivable		Account No. 111			Sales Tax Payable		Account No. 231
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Mar. 1, 20X1			1,788
Sales Returns and Allowances		Account No. 451			Carol Fountain		Terms n/30
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
					Mar. 1, 20X1			940
Rich Jones		Terms n/30
Date	Debit	Credit	Balance
Mar. 1, 20X1			848